Question
Find the markup on a computer system that sells for \( \$ 2,355.90 \) but costs \( \$ 1,849.95 \). Select one: a. \( \$ 505.95 \) b. \( \$ 4,205.85 \) c. \( \$ 2,355.90 \) d. \( \$ 1,849.95 \)
Ask by Ross Bush. in the United States
Jan 24,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
The markup is \$505.95.
Solution
To calculate the **markup** on the computer system, you'll subtract the **cost price** from the **selling price**.
**Given:**
- **Selling Price:** \$2,355.90
- **Cost Price:** \$1,849.95
**Calculation:**
\[
\text{Markup} = \text{Selling Price} - \text{Cost Price} = \$2,355.90 - \$1,849.95 = \$505.95
\]
**Answer:**
a. \$505.95
Reviewed and approved by the UpStudy tutoring team
Like
error msg
Explain 
Simplify this solution The Deep Dive
To find the markup, subtract the cost from the selling price: Markup = Selling Price - Cost Markup = \( \$ 2,355.90 - \$ 1,849.95 = \$ 505.95 \) So, the markup on the computer system is \( \$ 505.95 \). The correct answer is **a. \( \$ 505.95 \)**. Now, don't forget that markup is crucial in businesses as it helps to cover overhead costs and ensure a profit! It's a good practice to keep track of both selling price and cost to set competitive prices.
